”Hydropower key to Nepal”s growth, trade with India”

Hydropower is Nepal’s key to development and the country has an economically-viable potential of 40,000 MW of generation capacity of which it can export the surplus to neighbouring South Asian countries including India, an US government funding agency has said.

Developing sustainable hydropower generation will enable Nepal to balance its supply deficit in the dry season with the revenues made through exports during the season when river flows are high, US Agency for International Development said.

USAID said Nepal heavily depends on water resources to meet its energy demands as more than 90 per cent of its total electricity generation capacity is hydropower based.

“Hydropower plays a particularly important role in Nepal’s economic future because of the scale of its potential,” the agency said, estimating that Nepal has an economically-viable potential for more than 40,000 megawatts (MW) of hydropower generation capacity.

“If such potential is realised, it could easily meet Nepal’s suppressed demand and create a surplus that could be exported to neighbouring countries in South Asia,” it said.

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